News

HSBC GAM and IFC raise $474m for EM green bond fund

Green_bondsHSBC Global Asset Management and IFC, a member of the World Bank Group, have announced the third closing of a green bond fund which has raised $474 million (€431.97 million) to support climate risk-mitigation investments across emerging markets.

The HSBC Real Economy Green Investment Opportunity GEM Bond Fund (Regio)1 fund is designed to attract investments into emerging markets economies, enabling their energy transition and helping them limit the effects of climate change.

The fund will use both public and private capital to build climate change-mitigation capacity in emerging market economies.

HSBC and IFC each committed $75 million to the fund as anchor investors. Seven private investors have now joined HSBC and IFC, with others expected to commit later this year.

Nicolas Moreau, Global chief executive of HSBC Global Asset Management, said: “We are at a tipping point in terms of climate change and investing in the real economy in emerging markets is critical to achieving the global transition to a lower carbon economy.

“Funds such as Regio prove how we can achieve real economy impact in the markets that are most challenged by it.”

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